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All figures in USD unless stated otherwise
TORONTO, Jan. 13, 2021 /CNW/ - Halo Labs Inc. ("Halo" or the "Company") (NEO: HALO) (OTCQX: AGEEF) (Germany: A9KN) is pleased to announce that product sales continue to grow. The Company reports aggregate, unaudited monthly sales of approximately $2.3 million(1), one of the highest totals in the Company's history and a record total for the month of December. While December is historically a slower month in terms of sales, due to less selling days, the holiday season and flooded outdoor flower markets related to fall harvests, the stated sales represent a 135% increase over December 2019.
With Halo's pending acquisition of the assets of Herban Industries OR LLC ("Winberry") and the appointment of Dustin Jessup as its Chief Revenue Officer announced on December 18, 2020, the Company has already begun to recognize synergies and sales uplift through the combining of efforts with the Winberry salesforce.
Including the sales of Winberry of nearly $0.7 million(1) in December 2020, on a pro forma basis, total unaudited sales would be over $3.0 million for the month(2). This would effectively be a 212% increase over December 2019 on a pro forma basis. Effective January 1, 2020, Halo intends to begin to record sales of Winberry products following the distribution of Wineberry's inventory, in accordance with the previously announced services agreement, offtake agreement, and intellectual property licensing agreement. Halo will begin to fully consolidate the financial results of Winberry following the completion of the acquisition of the Winberry assets under the asset purchase agreement (the "APA"), which is expected to close within six months. Completion of the acquisition of the Winberry assets pursuant to the terms of the APA is subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approval from the Oregon Liquor Control Commission.
The Company's sales orders(3), including Winberry sales primarily to dispensaries, have been steadily growing all year from over $2.1 million in January 2020 to over $3.4 million in December 2020(1), which is an increase of 62% throughout the year. The attached graph shows Halo and Winberry combined sales orders from January to December 2020(1) (2).
Dustin Jessup, Chief Revenue Officer of Halo stated, "We continue to consolidate our sales forces and increase efficiencies within the sales division. In December alone, the Halo and Winberry sales team generated sales orders in excess of $3.4 million."
About Halo Labs
Halo is a leading, vertically integrated cannabis company that cultivates, extracts, manufactures and distributes quality cannabis flower, oils and concentrates, and has sold approximately six million grams of oils and concentrates since inception. Halo continues to evolve its business and scale efficiently, partnering with trustworthy leaders in the industry, who value the Company's operational expertise in bringing top-tier products to market. Current growth includes expansion in key U.S. markets, the United Kingdom and Africa, with planned expansion into the Canadian retail market.
Halo is led by a strong, diverse and innovative management team, with deep industry knowledge and blue-chip experience. The Company is currently operating in the U.S. in California, Oregon and Nevada. The Company sells cannabis products principally to dispensaries under its own brands Hush, Mojave, Exhale, and under partnership or license with OG DNA Genetics, Terphogz (doing business as Zkittlez™), Winberry and FlowerShop, a cannabis lifestyle and conceptual wellness brand in which G-Eazy is a partner and key member.
As part of continued expansion and vertical integration in the U.S., Halo boasts several grow operations throughout Oregon and California. In Oregon, the Company has a combined seven acres of outdoor cultivation, including East Evans Creek, a six-acre grow site in Jackson County, and Winberry Farms, a one-acre grow site in Lane County. In California, the Company is building out Ukiah Ventures, a planned 30,000-square-foot indoor grow, processing and manufacturing facility, including up to an additional five acres of industrial land to expand. Recently, Halo partnered with Green Matter Holding ("GMH") to purchase Bar X Ranch in Lake County, with plans to develop up to 80 acres of cultivation, which would comprise the largest grow in Northern California.
Internationally, the Company is currently cultivating cannabis at Bophelo Bioscience & Wellness (Pty) Ltd ("Bophelo") in Lesotho, which holds one of the largest marijuana cultivation licenses in Africa with a future capacity of up to 495 acres. To further Halo's global presence, the Company recently acquired CBPM importation and distribution licensing in the United Kingdom via cannabis suppliers Canmart Ltd ("Canmart"). Halo expects the cultivation and manufacturing operations of Bophelo, combined with the importation and distribution capabilities of Canmart, to drive growth of a well-positioned business to serve the U.K. market.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein may include, but are not limited to, statements about expected sales numbers, the completion of the Winberry asset acquisition in accordance with the terms of the APA, Halo's planned expansion into the Canadian retail market, the expected size and capabilities of the final facility planned at Ukiah Ventures, the size of Halo's planned cultivation facility in Northern California and the ability of Bophelo and Canmart to serve the U.K. market.
By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: unexpected costs or delays in the completion of the Company's proposed dispensaries and other operations; negative results experienced by the Company as a result of general economic conditions or the ongoing COVID-19 pandemic; delays in the ability of the Company to obtain certain regulatory approvals; unforeseen delays or costs in the completion of the Company's construction projects; adverse changes to demand for cannabis products; ongoing projects by competitors that may impact the relative size of the Company's growing operation; delays or unforeseen difficulties in connection with the cultivation and harvest of Halo's raw material; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Company's proposed operations; dependence upon third party service providers, skilled labor and other key inputs; and the other risks disclosed in the Company's annual information form dated April 16, 2020 and available on the Company's profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.
Pro Forma Information
This press release contains references to pro forma financial information, including with respect to pro forma sales. Pro forma sales include the sales for the twelve-month period (provided on a month-to-month basis) ended December 31, 2020 for Winberry. Pro forma financial information in this press release does not include anticipated costs and expenses to generate such sales. Completion of the proposed acquisitions under the APA is subject to, among other things, the satisfaction or waiver of any conditions precedent to the consummation of such acquisition (including the receipt of any requisite regulatory and third-party approvals). The Company believes the pro forma results presented provide relevant and useful information for investors because they clarify the Company's operating performance, make it easier to compare the Company's results with those of other companies and allow investors to review performance in the same way as the Company's management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of the Company's performance, and they may not be comparable to similarly named measurements from other companies.
Financial Outlook
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the sales of the Company and Winberry during the twelve-month period ended December 31, 2020 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading "Cautionary Note Regarding Forward-Looking Information and Statements" above and assumptions with respect to market conditions, pricing, and demand. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Cautionary Note Regarding Forward-Looking Information and Statements" above, it should not be relied on as necessarily indicative of future results.
Notes: |
|
(1) |
These preliminary and unaudited financial results are subject to customary financial statement procedures by the Company and its auditors. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See "Cautionary Note Regarding Forward-Looking Information and Statements". |
(2) |
Please see "Pro Forma Information" disclosure above. |
(3) |
Sales order are from the Company's and Winberry's sales platforms, via LeafLink and Nabis. Please note these numbers are higher than recorded sales and do not reflect potential cancellations, returns or credits. In addition, a portion of these orders may not be recorded in the month they are generated, if delivery has not been made and accepted |
SOURCE Halo Labs Inc.
Halo Labs, Investor Relations, [email protected]
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